Seminario 18/01: Mª Pilar Martínez García (U. Murcia) – Tourism, environment and growth in an economy with pollution abatement activities

Información

Abstract

In this paper a dynamic model of economic growth, tourism and environment is studied. The model considers tourists in the economy as optimizing agents, interacting with domestic consumers. The number of tourists arriving in the country follows the Tourism Are Life-cycle model with a tourism carrying capacity dependent on environmental quality. Tourism hurts environment and abatement activities have to be carried out in order to keep the economy growing. The paper studies, first, the conditions under which sustained economic growth and environmental quality are compatible and optimal, and, second, how tourism/environmental policy affects growth.